Question
Henrich is a single taxpayer. In 2021, his taxable income is $461,500. What is his income tax and net investment income tax liability in each
Henrich is a single taxpayer. In 2021, his taxable income is $461,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.)
a. All of his income is salary from his employer.
Amount | |
Income tax | |
Net investment income tax | 0 |
Total tax liability | $0.00 |
c. His $461,500 of taxable income includes $62,000 of long-term capital gain that is taxed at preferential rates.
|
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,950 | 10% of taxable income |
$ 9,950 | $ 40,525 | $995 plus 12% of the excess over $9,950 |
$ 40,525 | $ 86,375 | $4,664 plus 22% of the excess over $40,525 |
$ 86,375 | $ 164,925 | $14,751 plus 24% of the excess over $86,375 |
$ 164,925 | $ 209,425 | $33,603 plus 32% of the excess over $164,925 |
$ 209,425 | $ 523,600 | $47,843 plus 35% of the excess over $209,425 |
$ 523,600 | $157,804.25 plus 37% of the excess over $523,600 |
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 19,900 | 10% of taxable income |
$ 19,900 | $ 81,050 | $1,990 plus 12% of the excess over $19,900 |
$ 81,050 | $ 172,750 | $9,328 plus 22% of the excess over $81,050 |
$ 172,750 | $ 329,850 | $29,502 plus 24% of the excess over $172,750 |
$ 329,850 | $ 418,850 | $67,206 plus 32% of the excess over $329,850 |
$ 418,850 | $ 628,300 | $95,686 plus 35% of the excess over $418,850 |
$ 628,300 | $168,993.50 plus 37% of the excess over $628,300 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,200 | 10% of taxable income |
$ 14,200 | $ 54,200 | $1,420 plus 12% of the excess over $14,200 |
$ 54,200 | $ 86,350 | $6,220 plus 22% of the excess over $54,200 |
$ 86,350 | $ 164,900 | $13,293 plus 24% of the excess over $86,350 |
$ 164,900 | $ 209,400 | $32,145 plus 32% of the excess over $164,900 |
$ 209,400 | $ 523,600 | $46,385 plus 35% of the excess over $209,400 |
$ 523,600 | $156,355 plus 37% of the excess over $523,600 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,950 | 10% of taxable income |
$ 9,950 | $ 40,525 | $995 plus 12% of the excess over $ 9,950 |
$ 40,525 | $ 86,375 | $4,664 plus 22% of the excess over $40,525 |
$ 86,375 | $ 164,925 | $14,751 plus 24% of the excess over $86,375 |
$ 164,925 | $ 209,425 | $33,603 plus 32% of the excess over $164,925 |
$ 209,425 | $ 314,150 | $47,843 plus 35% of the excess over $209,425 |
$ 314,150 | $84,496.75 plus 37% of the excess over $314,150 |
Tax Rates for Net Capital Gains and Qualified Dividends
Rate* | Taxable Income | ||||
---|---|---|---|---|---|
Married Filing Jointly | Married Filing Separately | Single | Head of Household | Trusts and Estates | |
0% | $0 - $80,800 | $0 - $40,400 | $0 - $40,400 | $0 - $54,100 | $0 - $2,700 |
15% | $80,801 - $501,600 | $40,401 - $250,800 | $40,401 - $445,850 | $54,101 - $473,750 | $2,701 - $13,250 |
20% | $501,601+ | $250,801+ | $445,851+ | $473,751+ | $13,251+ |
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